Back to top

Image: Shutterstock

Fox (FOXA) to Report Q3 Earnings: What's in the Offing?

Read MoreHide Full Article

Fox (FOXA - Free Report) is set to report third-quarter fiscal 2023 results on May 9.

For the quarter, the Zacks Consensus Estimate for earnings is pegged at 88 cents per share, down 3.29% in the past 30 days. The figure indicates 8.64% growth from the year-ago reported figure.

The consensus mark for revenues, pegged at $4.05 billion, implies a 17.12% increase from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average negative surprise being 0.07%.

Let’s see how things have shaped up for this announcement.

Fox Corporation Price and EPS Surprise

 

Fox Corporation Price and EPS Surprise

Fox Corporation price-eps-surprise | Fox Corporation Quote

Factors to Consider

Fox’s third-quarter fiscal 2023 performance is expected to have benefitted from steady affiliate revenue growth. In the last reported quarter, affiliate fee revenues rose 1% year over year, reaching $1.71 billion, driven by 6% growth at the Television segment.

The Zacks Consensus Estimate for affiliate fee revenues is pegged at $1.89 billion, indicating year-over-year growth of 5.39%.

Advertisers are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising. This is expected to have reflected on this Zacks Rank #3 (Hold) company’s ad revenue growth in the to-be-reported quarter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for advertising revenues is pegged at $1.77 billion, indicating year-over-year growth of 35.57%.

In the last reported quarter, advertising increased 4% to $2.5 billion, driven by continued growth at Tubi and higher political advertising revenues from various partnerships and Super Bowl LVII.

In the third quarter, Tubi signed a content deal with Warner Bros. Discovery (WBD - Free Report) . WBD adds 14 WB branded FAST channels and more than 225 AVOD titles totaling more than 2,000 hours to the platform. This is expected to have boosted the popularity and viewership in the to-be-reported quarter.

On Feb 13, the company announced that the Super Bowl LVII had recorded an average preliminary audience of roughly 113 million on the Fox network and its streaming platform, according to Nielsen Media Research.

Tubi’s Total Viewing Time in 2022 was up 44% year over year, with more than 5 billion hours streamed in 2022, and the platform audience has grown, surpassing 64 million monthly active users. The trend is likely to have continued in the to-be-reported quarter.

Fox and Disney (DIS - Free Report) owned Hulu announced a multi-year content partnership. It includes an extensive multi-platform strategic market alliance and expansive programing slate. The partnership is expected to have positively impacted the viewership in the to-be-reported quarter.

According to Nielsen’s The Gauge, Tubi reached 1% of the total TV viewing minutes in February 2023, making it the most watched free ad supported television. Alphabet (GOOGL - Free Report) owned YouTube leads the list with 7.9%.

Moreover, Fox’s focus on expanding its digital business segments is likely to have boosted the company’s prospects in the to-be-reported quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in